P BANERJEE Vs. BHARAT HEAVY ELECTRICALS LIMITED

JUDGEMENT

(1.) Mr. P. Banerjee as the Sole Proprietor of M/s. Pee Tee Engineering Associates submitted a bid in pursuance of a tender floated by the respondent-Bharat Heavy Electricals Limited (for short BHEL?) for the work of construction of additional 250 flats at BHEL Colony, Sector-17, Noida on 7.6.1989. In terms of the requirement of the tender the bid was submitted under the cover of a letter of the even date. This letter at the inception stated that:

(2.) The letter also incorporated various aspects emanating from different clauses of the notice in that tender and the relevant clause for the present dispute as set out in the letter is as under:

(3.) It is the say of the appellant that a Letter of Intent was thereafter issued on 5.1.1990 through a telex message which began by referring to the offer of the appellant dated 7 th June, 20 th June and 12 th August, 1989 and subsequent MOMs dated 21 st November and 28 th November, 1989 calling upon the appellant to execute the agreement on the prescribed performa within ten (10) days from the date of the Letter of Intent. It is thereafter that an agreement dated 8.1.1990 was executed inter se the parties. This agreement specifically stated in the recital that the documents set out thereunder were deemed to form, and be read and construed as, part of the Agreement and at serial No.(h) thereof it was mentioned as under: